A tax on wealth generated by investors like hedge fund managers and billionaires would help raise billions for infrastructure and public safety, but Democrats would prefer to raise it on businesses, corporations and wealthy individuals.
“This is about the fairness of the tax system,” Senate Minority Leader Chuck Schumer said on Tuesday.
“It is a tax on the very wealthy.”
But Schumer and Senate Republicans will need Democrats to vote for it in order to move the bill through the Senate.
The bill also includes a new $50,000 income tax credit for millionaires, a $200,000 cap on the amount of tax paid by people who have less than $10 million in taxable assets, and a $500,000 limit on what a person can deduct from his or her taxes.
The tax credit will be phased out for people earning more than $200 million a year.
The plan also includes $2,500 in refundable child tax credits for children who earn up to $1 million and $2.5 million for people who earn between $1.5 and $1,945,000.
The tax cuts will go into effect on Jan. 1.